I recently saw a Facebook post that said:
“I got my 501(c)(3) letter yesterday. How can I apply for grants?”
Sadly, it’s a common question.
And it reflects one of the biggest misconceptions about nonprofit funding.
For freelance grant writers and grant agencies, this is where discernment matters when choosing to work with clients.
A determination letter is a legal milestone. It is not a readiness signal.
So, how do you know whether to turn down a client?
(I turn down 70% of the nonprofit organizations that express interest in hiring my agency.)
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Here are a few red flags that an organization may not yet be ready for grant funding:
No clearly defined program model
No measurable outcomes or evaluation plan
No operating history
No board engagement or board giving
No board-approved strategic plan
No established budget beyond projections
No audited or even year-end financials
No documented community need beyond anecdotal evidence
Grants — especially foundation and government funding — are built on demonstrated capacity and credibility.
Most funders want to see:
At least one year (often more) of program implementation
Real financial data
Evidence of impact
Operational stability
Community support or partnership
When a brand-new organization asks for grant support immediately, it’s often coming from urgency. Or misunderstanding. Or both.
As grant professionals, part of our role is education.
Sometimes the right answer isn’t, “Let’s start applying.”
It’s: “Let’s build your infrastructure first.”
“Let’s clarify your programs and outcomes.”
“Let’s develop a diversified revenue plan.”
Taking on a client who isn’t grant-ready can lead to:
Unrealistic expectations
Strained relationships
Damaged credibility
And frustration for everyone involved
Not every “yes” is a good contract.
Professional grant writers don’t just write proposals.
They assess readiness.
And sometimes the most ethical, strategic move is to say:
“Not yet.”
Until next time,
Write Epic Grants